Shares of Etsy Inc. slumped 3.2% in morning trading Tuesday, after the BofA Securities analyst Curtis Nagle’s lackluster call on the online crafts marketplace, calling the company an “eclectic, high margin” e-commerce company, but “not at a bargain price.” Nagle initiated Etsy with a neutral rating and stock price target of $120, as he saw “limited opportunities” for multiple expansion in the near term. He believes the company can return to revenue growth in the high-single digit percentage range, but not until the second half of 2023. “[I]n the near-to-medium term, we are more cautious on [gross merchandise sales]/revenues re-accelerating due to tough compares (particularly 4Q holiday period) and high macro risk which could impair demand for Etsy’s discretionary products,” Nagle wrote in a note to clients. The stock has soared 50.1% over the past three months, but has plunged 50.6% year to date. In comparison, the S&P 500 has gained 4.9% the past three months and lost 19.1% this year.
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